[kictanet] 3 Media houses protest Majanja's Digital Migration Ruling
Ngigi Waithaka
ngigi at at.co.ke
Mon Dec 30 20:40:05 EAT 2013
Muthusi,
There was a point I thought we were making progress in this debate, but, it
seems we are back to square one in procurement of projects of *National
Interest* and comparisons to marking of college exams.
If the example, from say Canada, on procurement of projects of National
Interest that has been clearly illustrated does not strike any cords with
you, then I am not sure anything else ever will.
They say you cannot fool everyone all the time, and I'll just pen-off by
saying the debate has turned so simplistic as to not warrant any further
comment.
Waithaka Ngigi
Alliance Technologies
Nairobi, Kenya
www.A1.io
On 30 Dec 2013 19:39, "Mutua, Muthusi" <Mutua at cck.go.ke> wrote:
> Indeed Wambua, across the border is Tanzania a consortium comprising two
> local media firms had to sell off 49% equity to foreign investors after it
> was unable to raise the required capital even after wining the licence.
> This means the company now can no longer be called local in the strict
> sense.
>
> Its all good sounding to root for Kenyan companies, but the reality is you
> cannot apply this fully across the board. Its for this reason you see our
> leaders working to attract foreign investment. This is not to say they
> don't value Kenyan investors.
>
> As for the licence in question, the issue was never about foreign or local
> investors; they simply lost the bid alongside other firms - both local and
> foreign. Its like arguing that examiners at a local college need to ensure
> local students don't fail their exams as foreign ones pass!
>
> Can somebody tell us why local media are not willing to team up with
> another local media at Signet? Aside from those in court how many other
> players who fit local media description are not supporting their suit?
> Isn't it clear here we are dealing more with another issue than just the
> local media clamour. Who is more local than KBC?
>
>
>
>
> *From*: Wambua, Christopher
> *Sent*: Monday, December 30, 2013 06:50 PM
> *To*: S.M. Muraya <murigi.muraya at gmail.com>; Walubengo J <jwalu at yahoo.com>
>
> *Cc*: Consumer and Public Affairs; KICTAnet ICT Policy Discussions <
> kictanet at lists.kictanet.or.ke>
> *Subject*: Re: [kictanet] 3 Media houses protest Majanja's Digital
> Migration Ruling
>
> Muraya
>
> I did not in anyway suggest that Kenya firms are generally unable to
> prepare bids that can win licence tenders. My comments were only specific
> to the 2nd signal distribution licence.
>
> Having said that, I wish to state here that there are many Kenyan firms
> that have been awarded licences in the ICT sector. The media firms for
> which you are passionately arguing their case are indeed our licensees. And
> many other local firms have been licensed in other market segments.
>
> I also wish to add that there is no law or policy that hinders local
> firms from participating in the local ICT sector. As you may recall, at the
> initial stages of sector liberalisation, the ceiling for foreign ownership
> in local ICT firms was 30%. Indeed, Safaricom and Airtel initially enjoyed
> 70% local shareholding. The initial ICT sector policy guidelines described
> ICT as a strategic sector of the economy in which local participation
> should be encouraged.
>
> However, the government soon came to terms with the reality that
> telecoms infrastructure roll out required immense resources and
> subsequently reviewed the ceiling to 60 percent and ultimately to 30%
>
> You will recall that the licensing process for the Second National
> Operator (SNO) collapsed due to the inability of the local partner to raise
> its part of the bid licence fee. As a result, the government further
> reviewed the minimum amount of shareholding in local ICT firms to 20%,
> and gave foreign firms that win ICT tender licences a three-year period
> within which to comply with this policy requirement.
>
> Despite the reduction, local ICT firms can still bid and win ICT
> licence tenders.
>
> Wambua
>
>
>
>
> Sent from my BlackBerry 10 smartphone.
> *From: *S.M. Muraya
> *Sent: *Monday, 30 December 2013 14:23 PM
> *To: *Walubengo J
> *Cc: *Consumer and Public Affairs; KICTAnet ICT Policy Discussions
> *Subject: *Re: [kictanet] 3 Media houses protest Majanja's Digital
> Migration Ruling
>
> Point is... we have contracted/licensed foreigners to control .KE Info
> Infrastructure, as if it is like outsourcing Road Construction.
>
> Expected Response: "Kenyan firms do not know how to respond to
> tenders... cannot write essays/proposals well.."
>
> It follows persons who look down on their fellow Kenyans/Africans cannot
> build market oriented Kenyan/African firms.
>
> Political brokers/foreign firms do better in winning government
> contracts than in serving the markets they seek to exploit (not benefit).
>
> They often hire evil parties to run interference/propaganda against
> local initiatives, on lists such as this - sometimes using pseudo names.
>
> Which laws/existing contracts ensure local capacity and talent is
> developed? www. Links/Transparency will be appreciated.
>
> No patriot can argue against foreign investments which bring
> manufacturing plants/knowledge to benefit our nation and region.
>
> We oppose one way tickets/contracts for foreigners (in cahoots with
> public officials) to ignore local initiatives/investments.
>
> Think about it, foreigners can easily run away, unlike the Kenyan with
> dark skin who has to beg for a VISA to enter developed nations.
>
> What do we end up with for favoring foreigners (fronted by public
> officials who favored them)?
> Anglo Leasing..Ghosts in some far away land.. we cannot prosecute for
> failing to deliver forensic labs and information systems/services.
>
> At least the Kenyan firm can be shamed in court for not delivering
> services... even the Judges are corrupted by the .co.ke.
>
> ********
>
> Way forward... .GO.KE, favors Signet and keeps the offer "OPEN" to
> interested local firms to buy shares in Signet.
>
> These KENYAN firms are likely to already develop, localize and
> demonstrate technical capacity.
>
> Equipment can be sourced from China, S,Korea, or Japan, but, the usage
> of that equipment to distribute/broadcast digital signals must be done by a
> Kenyan firm/entity.
>
>
>
> Regards
>
> Murigi / Stanley Muraya
>
> *"Better a patient person than a warrior, one with self-control than one
> who takes a city." Prov 16:32*
>
>
> On Mon, Dec 30, 2013 at 10:35 AM, Walubengo J <jwalu at yahoo.com> wrote:
>
>> @Ngigi, @Ndemo,
>>
>> this is the hard-talk that keeps me coming back to KICTAnet :-)
>>
>> my 2pence is that this war is NOT about digital migration - given that
>> both Government and Media houses agree on that. This was is about who
>> controls the digital signal distribution (licence). Its sort of a chicken
>> and egg problem in that the current digital signal distributors
>> (Signet/PANG) dont have "local" content but have the license to distribute.
>> While the current local content guys (media houses) have the content but
>> lack the digital license to distribute.
>>
>> A license without content is like a gun without a bullet. A bullet
>> without a gun is of no use either. Who will blink first?
>>
>> Afrosinema continues :-)
>>
>> walu.
>>
>> --------------------------------------------
>> On Mon, 12/30/13, Ngigi Waithaka <ngigi at at.co.ke> wrote:
>>
>> Subject: Re: [kictanet] 3 Media houses protest Majanja's Digital
>> Migration Ruling
>> To: jwalu at yahoo.com
>> Cc: "Consumer and Public Affairs" <cpa at cck.go.ke>, "KICTAnet ICT Policy
>> Discussions" <kictanet at lists.kictanet.or.ke>
>> Date: Monday, December 30, 2013, 9:32 AM
>>
>> Daktari,
>> Having looked at your comments, I would want
>> to think the comparisons you have picked do not quite cut
>> it.
>> Fact, we currently have firms in Kenya apart
>> from KBC who have a reliable analogue transmission network
>> across the entire country and so far they have delivered on
>> this.
>> To upgrade this transmission network to pump
>> out Digital Signals, instead of the Analogue is not rocket
>> science. It can be done easily and would reuse such existing
>> infrastrucure such as sites, masts, backup generators,
>> logistics & security etc
>>
>> To say or assume that these firms could *not*
>> provide a Digital Solution if asked to, simply does not
>> add up. Not when they have 60% of what you need and the
>> remaining parts e.g multiplexers, antennas are off-the-shelf
>> parts.
>>
>> Second, to compare these firms to Mobitelea is
>> really pushing it. Here you are talking of firms that have
>> demostrated capacity in building & maintaining their own
>> infrastructure and that are employing Kenyans to maintain
>> and operate them.
>>
>> These are not politically connected individuals
>> who have nothing else to offer apart from access to high
>> places.
>> These are solid Kenyan companies.
>> Thirdly, this case cannot even be remotely
>> compared to KPTC where competition had to be introduced to
>> kickstart our Telco Sector. In this case you are actually
>> consolidating the *infrastructure* industry to a single
>> vendor not liberating it.
>>
>> You are going from more than 10 firms each with
>> own transmission infrastrucure to two firms, one of which
>> (KBC) as you have correctly indicated doesn't cut it.
>>
>> So infact you have consolidated our entire
>> transmission industry into a single company, and then given
>> that to the Chinese!
>> If there is something that smells Mobitelea.
>> That is it!
>> Fourth you mention the China Telcom partnering
>> up with Apple iPhone as an example of how countries
>> sometimes partner with firms outside their own. But you fail
>> to mention they never went to Apple as their first point of
>> call. They first partnered up with Lenovo, HTC, Huawei
>> (solid Chines firms) before the call to Cupertino was
>> made.
>>
>> You take care of your own first before you go
>> taking care of others. That's what smart countries &
>> leadership does.
>> Lastly, please let us differentiate btn the
>> Infrastructure issues and Digital Migration issues.
>> On Digital migration, we are headed there and
>> there is not much support for Media firms on this. Wapende
>> wasipende!
>> However, on denying them the deal to build
>> the Digital Infrastructure is very questionable and on the
>> very least points to a certain 'Mobitelea' type
>> deal, exactly what you say we ought to have avoided.
>>
>> But then again, This is Kenya. Where the
>> impossible happens.
>> Waithaka Ngigi
>> Alliance Technologies
>>
>> Nairobi, Kenya
>> www.A1.io
>> On 29 Dec 2013 21:36,
>> "Bitange Ndemo" <bitange at jambo.co.ke>
>> wrote:
>>
>> Kivuva,
>>
>> Iam a supporter of building local capacities but whichever
>> way CCK would
>>
>> have given out the license, there was going to be criticism.
>> CCK wanted
>>
>> someone capable of putting up infrastructure after we
>> discovered Signet
>>
>> was taking too long and Government did not have money. The
>> financial bid
>>
>> for all the local firms did not measure up to what CCK had
>> requested.
>>
>>
>>
>> You realize CCK has gone through this journey before and
>> were hit hard
>>
>> when policy requirement needed 70 percent local
>> participation, we got
>>
>> Mobitelea. Every policy pronouncement has some wheeler
>> dealers behind
>>
>> singing patriotism. World over what is needed is the
>> ability to provide
>>
>> the solution. You read the other day that China Telcom was
>> partnering
>>
>> with I-Phone yet China is the greatest producer of mobile
>> handsets. There
>>
>> comes a time when we must accept partnerships that will help
>> us build
>>
>> capacity. We provided that opportunity in Signet but it
>> was declined.
>>
>> When you focus on coverage to offer essential service, you
>> look at
>>
>> capability as demonstrated in the financials.
>>
>>
>>
>> For many years we protected KPTC as a critical
>> infrastructure but what we
>>
>> ended up with was poverty en masse. Our people would not
>> afford
>>
>> telephony. Ever since we liberalized the communications
>> sector, it is now
>>
>> contributing more than 5 percent to the economy up from zero
>> percent. It
>>
>> is dangerous to focus on one aspect of migration
>> infrastructure. If each
>>
>> of the broadcaster is given multiplexing ability, they will
>> hoard the
>>
>> spectrum and shut out new entrants just when the creative
>> economy is
>>
>> trying to pick up. The current Media is simply trying to
>> protect its own
>>
>> interests considering the fact that we have new hard working
>> Kenyans
>>
>> entering the broadcast arena. Why would we be supportive of
>> oligopolistic
>>
>> practices when the industry is opening up to more players?
>>
>>
>>
>> Court or no court Migration will take place and new business
>> models will
>>
>> emerge. This is where we need to focus our attention.
>> The delaying
>>
>> tactics you are seeing is to disenfranchise more than 100
>> new broadcasters
>>
>> that are born and bred in this country. I said before and
>> would state
>>
>> here that not even Signet or PANG would build a sustainable
>> business model
>>
>> without serious content aggregation strategy considering the
>> fact that
>>
>> technology changes every 3 years.
>>
>>
>>
>> Ndemo.
>>
>>
>>
>>
>>
>>
>>
>>
>>
>>
>>
>> > Ali, I'm afraid many listers are not getting your
>> argument, that of
>>
>> > auctioning our critical resources to foreigners.
>>
>> >
>>
>> > Many of us have been dragged into taking sides either
>> for the
>>
>> > government (CCK), or the local media houses. If we
>> divorce them from
>>
>> > this debate, maybe we will be more objective.
>>
>> >
>>
>> > Let me digress, we have enough coal in Kitui to setup a
>> powerplant
>>
>> > that can propell Kenya to vision 2030 and stop relying
>> on poor
>>
>> > rainfall and other unreliable renewable energy like
>> geothermal. But
>>
>> > what did we do with the coal? We auctioned it to the
>> Chinese "who need
>>
>> > the power more than us." That is the same thing
>> happening to our
>>
>> > spectrum resources.
>>
>> >
>>
>> > Forget about procurement laws and let's think about
>> economics that
>>
>> > will build the country without taking sides. Is it
>> better to give the
>>
>> > frequency distribution to a local firm, and keep local
>> dollars local,
>>
>> > or is it better to have that capital flight to China?
>> We should even
>>
>> > give the third licence FREE to a consortium of local
>> firms than
>>
>> > auction it for a Billion dollars to a foreigner.
>>
>> >
>>
>> > Are we a nation that has lost national pride?
>>
>> >
>>
>> > Remember CCK cannot have an objective stand on this
>> since Wambua has
>>
>> > to respond with the official government position, and I
>> cannot fault
>>
>> > him for that. Only civil society can take the high
>> moral ground and do
>>
>> > what is good for Kenya. Advocate for our critical
>> resources, airwaves,
>>
>> > minerals, tourism, ... to be controlled by locals.
>>
>> >
>>
>> > Dr. Ndemo is the economist on the list. Can he teach us
>> why developed
>>
>> > economies work so hard to support their industries,
>> while Kenya works
>>
>> > extra hard to support foreign economies? What are the
>> repercussions on
>>
>> > future generations?
>>
>> >
>>
>> > Anybody who cannot get this argument is beyond
>> uncolonization.
>>
>> >
>>
>> > --
>>
>> > ______________________
>>
>> > Mwendwa Kivuva, Nairobi, Kenya
>>
>> > twitter.com/lordmwesh
>>
>> > kenya.or.ke | The Kenya we
>> know
>>
>> >
>>
>> > _______________________________________________
>>
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>> >
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>
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